A resource analyst with Fat Prophets, David Lennox, told Radio Australia's Asia Pacific program the immediate impact of the ban will be higher prices.

"What we actually did see was a lift in the nickel price as a result of what Indonesia was proposing to do," he said.

Nickel prices jumped 6 per cent across two days once the ban kicked in.

Indonesia produces about 16 per cent, or 320,000 tonnes, of the world's two million tonnes of nickel.

"For Australian nickel producers, it is difficult for them to actually turn on the tap really quickly," Mr Lennox said.

Bauxite used in aluminium production is the other major target of the ban.

China is a major importer of both commodities, having the largest steel production capacity, but Mr Lennox believes they have large stockpiles of both.

"We would think they would be watching very closely what is happening in Indonesia, and they would probably be trying to work with the Indonesian government to ensure their steel processing and the price of nickel is not affected significantly by what Indonesia is trying to do," he said.

The ban was initially meant to be more wide-ranging, but lobbying from US mining giants Freeport McMoRan and Newmont earned reprieves for coal, copper, gold and other products.

Such companies have the means to build or extend their processing or refining operations.

However, the Indonesian press is reporting the loss of 30,000 mining jobs already as smaller miners cut back production, while an industry association intends to lodge a legal challenge to the ban.

Despite a long-range warning of the ban hanging over the industry's head, there appears to have been little preparation for it.

David Lennox says details remain sketchy and the goal of increased local processing might not be easily realised.

"You would have miners that would now have to go and find significant capital to actually put into place a secondary refining step that before they wouldn't have to," he said.